MMRGlobal 2014 "This Is Our Year" Letter to Shareholders - Seite 3

In MMR's 10-K filed yesterday, the Company reported that Subscriber Revenue increased by 9.7% as compared to the same period in 2012. We believe the increase was driven by the awareness of Personal Health Records driven by the money spent on advertising by HealthCare.gov and the resulting media exposure about the importance of having a PHR. Notwithstanding the positive trend, the Company's overall Revenue decreased from reduced MMRPro sales and Biotech Licensing Fees. The decrease in MMRPro was due to unforeseen delays in the opening and setup of new sales channels with major distribution partners and the changes in the product to make it work with any scanner. The decrease in the Biotech Licensing Fees is due to delays in reaching specific milestones under the Company's major biotech licensing agreement. We believe at least one of those milestones should come due during the current fiscal year.

The Company's Cost of Revenue decreased by 55% and overall our Gross Profit in 2013 was higher than 2012 by 50.5%. Our General and Administrative expenses increased by nearly $2 million dollars over 2012, mainly due to increased legal and consulting expenses, which included costs to prosecute additional relevant patents and other continuation claims both in the U.S. and internationally, not including litigation costs pertaining to the Company's patent infringement claims in the United States. The investment in these expenses has already begun to pay off in 2014. For a complete description of the Company's 2013 results we encourage you to read our 10-K on file with the SEC available on the Company's Investor Relations site.

In 2014, we also project that we will receive significant income from existing license agreements pertaining to our biotech assets, which we acquired through the Company's 2009 Reverse Merger with Favrille, Inc. These assets have particular utility for the treatment of cancer and other diseases of the immune system. These assets which include patient samples are now owned and/or controlled by the Company, which has identified licensing opportunities and agreements that include milestone payments in excess of $13 million dollars.

In 2013, the Company received its first U.S. patent issued for "Antibodies and Methods for Making and Using Them," followed by patents issued in Australia and South Korea. Additionally, another U.S. patent was issued for our "Method and Composition for Altering a B Cell Mediated Pathology," giving us four U.S. patents under this title and significant manufacturing patent protection in the U.S. Our biotech intellectual property portfolio covers patents and applications directed to protection of our anti-CD20 monoclonal antibodies and idiotype cancer vaccine. In addition to the U.S., we also have patents issued in numerous other countries including Mexico, Singapore, Hong Kong, Japan and throughout Europe, and patents pending in various other countries of commercial interest.